EXHIBIT 99.1
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NEWS RELEASE
FOR IMMEDIATE RELEASE | Contact: | Steven E. Nielsen, President and CEO | ||
Richard L. Dunn, Senior Vice President | ||||
and CFO | ||||
(561) 627-7171 |
Palm Beach Gardens, Florida | February 27, 2007 |
DYCOM ANNOUNCES FISCAL 2007 SECOND QUARTER EARNINGS AND
PROVIDES GUIDANCE FOR THE THIRD QUARTER OF FISCAL 2007
PROVIDES GUIDANCE FOR THE THIRD QUARTER OF FISCAL 2007
Palm Beach Gardens, Florida, February 27, 2007—Dycom Industries, Inc. (NYSE Symbol: “DY”) announced its results today for the second quarter ended January 27, 2007. The Company reported income from continuing operations and net income for the quarter ended January 27, 2007 of $5.6 million, or $0.14 per common share diluted, versus income from continuing operations and net income for the quarter ended January 28, 2006 of $3.9 million, or $0.10 per common share diluted. Total contract revenues from continuing operations for the quarter ended January 27, 2007 were $258.3 million compared to $237.1 million for the quarter ended January 28, 2006, an increase of 8.9%. Stock based compensation expense for the quarter ended January 27, 2007 and quarter ended January 28, 2006 was $1.6 million and $0.9 million, respectively, on a pre-tax basis.
For the six months ended January 27, 2007 income from continuing operations was $15.2 million, or $0.37 per common share diluted. For the six months ended January 28, 2006 income from continuing operations was $14.4 million, or $0.33 per common share diluted. Net income was $15.1 million, or $0.37 per common share diluted for the six months ended January 27, 2007, versus net income of $14.6 million, or $0.33 per common share diluted for the six months ended January 28, 2006. Total contract revenues from continuing operations for the six months ended January 27, 2007 were $528.8 million compared to $490.7 million for the six months ended January 28, 2006, an increase of 7.8%. Stock based compensation expense for the six months ended January 27, 2007 and the six months ended January 28, 2006 was $3.3 million and $1.9 million, respectively, on a pre-tax basis.
The Company has reported the results of Apex Digital, LLC as discontinued operations in the accompanying financial information. In August 2006, Apex notified its primary customer of its intention to cease performing installation services in February 2007. Effective December 2006, this customer transitioned its installation service requirements to other providers.
Dycom also announced its outlook for the third quarter of fiscal 2007. The Company currently expects revenue from continuing operations for the third quarter of fiscal 2007 to range from $275 million to $295
million and diluted earnings per share from continuing operations to range from $0.23 to $0.28, including stock based compensation expense of approximately $1.5 million on a pre-tax basis. Management believes that discontinued operations will not have a material impact on the quarter.
A Tele-Conference call to review the Company’s results and address its outlook will be hosted at 9:00 a.m. (ET), Wednesday, February 28, 2007; Call 877-209-0397 (United States) or 612-332-1213 (International) and request “Dycom Earnings” conference call.A live webcast of the conference call will be available athttp://www.dycomind.com. If you are unable to attend the conference call at the scheduled time, a replay of the live webcast will also be available athttp://www.dycomind.com until Friday, March 30, 2007.
Dycom is a leading provider of specialty contracting services throughout the United States. These services include engineering, construction, maintenance and installation services to telecommunications providers, underground locating services to various utilities, including telecommunications providers, and other construction and maintenance services to electric utilities and others.
Fiscal 2007 second quarter and six-month results are preliminary and are unaudited. This press release contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act. Such statements include, but are not limited to, the Company’s expectations for revenues, stock-based compensation expense and earnings per share. These statements are based on management’s current expectations, estimates and projections. Forward-looking statements are subject to risks and uncertainties that may cause actual results in the future to differ materially from the results projected or implied in any forward-looking statements contained in this press release. Such risks and uncertainties include: business and economic conditions in the telecommunications industry affecting our customers, the adequacy of our insurance and other reserves and allowances for doubtful accounts, whether the carrying value of our assets may be impaired, whether our recent acquisition can be efficiently integrated into our existing operations, the impact of any future acquisitions, the anticipated outcome of other contingent events, including litigation, liquidity needs and the availability of financing, as well as other risks detailed in our filings with the Securities and Exchange Commission. The Company does not undertake to update forward-looking statements.
—Tables Follow—
NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
January 27, 2007 and July 29, 2006
Unaudited
CONSOLIDATED BALANCE SHEETS
January 27, 2007 and July 29, 2006
Unaudited
January 27, | July 29, | |||||||
2007 | 2006 | |||||||
($ in 000's) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and equivalents | $ | 14,445 | $ | 27,268 | ||||
Accounts receivable, net | 120,052 | 143,099 | ||||||
Costs and estimated earnings in excess of billings | 80,886 | 79,546 | ||||||
Deferred tax assets, net | 14,216 | 12,793 | ||||||
Inventories | 8,350 | 7,095 | ||||||
Other current assets | 12,646 | 9,311 | ||||||
Current assets of discontinued operations | 6,152 | 5,196 | ||||||
Total current assets | 256,747 | 284,308 | ||||||
Property and equipment, net | 154,354 | 125,393 | ||||||
Intangible assets, net | 319,113 | 265,133 | ||||||
Other | 13,371 | 13,928 | ||||||
Non-current assets of discontinued operations | 121 | 1,253 | ||||||
Total | $ | 743,706 | $ | 690,015 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 26,668 | $ | 25,715 | ||||
Current portion of debt | 3,343 | 5,169 | ||||||
Billings in excess of costs and estimated earnings | 584 | 397 | ||||||
Accrued self-insured claims | 28,410 | 25,886 | ||||||
Income taxes payable | 1,198 | 4,979 | ||||||
Other accrued liabilities | 45,871 | 44,337 | ||||||
Current liabilities of discontinued operations | 5,047 | 5,311 | ||||||
Total current liabilities | 111,121 | 111,794 | ||||||
Long-term debt | 174,517 | 150,009 | ||||||
Accrued self-insured claims | 30,689 | 30,770 | ||||||
Deferred tax liabilities, net non-current | 17,357 | 6,576 | ||||||
Other liabilities | 1,310 | 289 | ||||||
Non-current liabilities of discontinued operations | 1,283 | 1,122 | ||||||
Stockholders’ Equity | 407,429 | 389,455 | ||||||
Total | $ | 743,706 | $ | 690,015 | ||||
NYSE: “DY”
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Three Months | Three Months | Six Months | Six Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
January 27, | January 28, | January 27, | January 28, | |||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
(In 000's, except per share amounts) | ||||||||||||||||
Contract revenues | $ | 258,293 | $ | 237,091 | $ | 528,846 | $ | 490,733 | ||||||||
Cost of earned revenues | 210,771 | 196,994 | 428,536 | 404,272 | ||||||||||||
General and administrative expenses (1) | 21,395 | 18,552 | 43,074 | 37,377 | ||||||||||||
Depreciation and amortization | 14,142 | 11,776 | 26,637 | 22,817 | ||||||||||||
Total | 246,308 | 227,322 | 498,247 | 464,466 | ||||||||||||
Interest income | 234 | 523 | 627 | 1,212 | ||||||||||||
Interest expense | (3,953 | ) | (4,007 | ) | (7,710 | ) | (4,873 | ) | ||||||||
Other income, net | 1,129 | 240 | 1,624 | 1,325 | ||||||||||||
Income from continuing operations before income taxes | 9,395 | 6,525 | 25,140 | 23,931 | ||||||||||||
Provision for income taxes | 3,747 | 2,654 | 9,966 | 9,540 | ||||||||||||
Income from continuing operations | 5,648 | 3,871 | 15,174 | 14,391 | ||||||||||||
Income (loss) from discontinued operations, net of tax | (63 | ) | — | (29 | ) | 202 | ||||||||||
Net income | $ | 5,585 | $ | 3,871 | $ | 15,145 | $ | 14,593 | ||||||||
Earnings per common share — Basic: | ||||||||||||||||
Income from continuing operations | $ | 0.14 | $ | 0.10 | $ | 0.38 | $ | 0.33 | ||||||||
Income (loss) from discontinued operations | — | — | — | 0.01 | ||||||||||||
Net income | $ | 0.14 | $ | 0.10 | $ | 0.38 | $ | 0.34 | ||||||||
Earnings per common share — Diluted: | ||||||||||||||||
Income from continuing operations | $ | 0.14 | $ | 0.10 | $ | 0.37 | $ | 0.33 | ||||||||
Income (loss) from discontinued operations | — | — | — | — | ||||||||||||
Net income | $ | 0.14 | $ | 0.10 | $ | 0.37 | $ | 0.33 | ||||||||
Shares used in computing earnings per common share (2): | ||||||||||||||||
Basic | 40,295,932 | 40,058,234 | 40,253,498 | 43,533,157 | ||||||||||||
Diluted | 40,599,162 | 40,274,160 | 40,553,092 | 43,738,518 | ||||||||||||
(1) | Includes stock-based compensation expense of $1.6 million and $3.3 million for the three and six months ended January 27, 2007, respectively, and $0.9 million and $1.9 million for the three and six months ended January 28, 2006, respectively. | |
(2) | The Company purchased 8.76 million common shares on October 11, 2005 pursuant to a “Dutch Auction” tender offer. |